June 1, 2016

Alliance weighs in on potential House bill

The Alliance and several of its members, shown in bold, along with representatives of most of the Nation’s postage-payers, signed this letter to the House Oversight Committee as it considers possible postal reform legislation:

May 24, 2016

The Honorable Jason Chaffetz

Chairman, Committee on Oversight and Government Reform

The Honorable Elijah Cummings

Ranking Member, Committee on Oversight and Government Reform

The Honorable Mark Meadows

Chairman, Subcommittee on Government Operations

The Honorable Gerald Connolly

Ranking Member, Subcommittee on Government Operations

Committee on Oversight and Government Reform

United States House of Representatives

2157 Rayburn House Office Building
Washington, D.C. 20515

Fax: (202) 225-3974

Re: For the Record of the Hearing, “Reforming the Postal Service: Finding a Viable Solution”, May 11, 2016

Dear Representatives Chaffetz, Cummings, Meadows, and Connolly:

As representatives of a large portion of the Postal Service’s postage-paying mailing industry, using all types and classes of mail and representing tens of billions of mail pieces and tens of billions of dollars in postal revenue, we write to express our strong opposition to a legislative proposal to increase the rates of postage paid by individuals, businesses, and nonprofit organizations that use the mail – a proposal advocated by two of the witnesses at the Committee’s May 11, 2016 hearing.

The undersigned businesses and nonprofits and members of the undersigned associations are the mail owners and/or service providers for the vast majority of the 93 percent of postal mail volume – 144 billion pieces – sent by commercial and nonprofit organizations, and are the recipients of another 4.5 percent of mail – 7 billion pieces – sent by households to these organizations.

Contrary to any misimpression that “a broad swath” of the postage-paying mailing industry is supportive of a legislated rate increase (whether in the guise of “restoring” by law the “exigent” rates of postage that expired on April 10, 2016, or in some other descriptive form), the undersigned organizations stand firmly opposed to any such proposal.

The Postal Service certainly faces fundamental problems as it attempts to cope with significant change in the nature and scope of its core business.  But those problems will not be solved by imposing a statutory rate increase.

Our organizations remain committed to the Postal Service and its long-term viability.  Mail continues to be the lifeblood of many businesses and nonprofits, and each of us stands ready to work with Congress and the Postal Service to help resolve the complex issues facing the organization today.  We remain willing to support constructive measures that were touched on during the hearing that, if adopted, would enhance the Postal Service’s financial stability going forward.  These include Medicare integration and the restructuring of the Postal Service’s retiree health and pension benefit obligations, for which there is indeed consensus among the Postal Service, employee groups, and the full mailing community.  However, we cannot support non-consensus and unbalanced proposals – such as the first Congressionally-mandated general increase in postal rates since 1968.

We believe that there is time to step back and look in a balanced fashion at the Postal Service of the future. The Postal Service is coming off a record-breaking holiday season, with year-to-date package volume up 14% from last year. 2016 is an election year, and the Postal Service has plans to handle $1 billion in political mail this election cycle. The Postal Service’s year-to-date operating surplus is $350 million above initial projections, and the Service had $8.3 billion of cash on hand at the end of March. The end of the exigency surcharge last month will give an additional boost to mail volume in all classes.

There is no need to take so controversial an action as imposing a rate increase by law, certainly not without a clearer picture of potential volume and revenue growth for the Postal Service in the years ahead.  Fortunately, existing law already provides for a review of Postal Service finances and the postal pricing system by the independent Postal Regulatory Commission beginning in December of this year.  No change in law is necessary to make that happen.  We look forward to participating in the review, along with the Postal Service and other interested parties.

While the Postal Service has financial challenges, we respectfully submit that restoring Congress to the business of postal ratemaking is not a solution, in whole or in part. We stand ready to work with the Committee to move forward with the constructive, consensus proposals that are on the table, as we all pursue our common goal of a sustainable path forward for the nation’s postal system and all who rely on it.

Respectfully,                          Cc: All members, Committee on Oversight & Government Reform

Alliance of Nonprofit Mailers

Association for Postal Commerce

Continuity Shippers Association

Direct Marketing Association

MPA – The Association of Magazine Media

Major Mailers Association

National Postal Policy Council

Red Tag News Publications Association

Software & Information Industry Association

Active Interest Media, Inc.

American Management Association

American Media Inc.

American Quarter Horse Association

Bonnier Corporation

Bloomberg Media Group

Condé Nast

Consumer Reports

Disabled American Veterans

Easterseals

Emmis Communications

ESPN The Magazine

Forbes Media, LLC

GrayHair Advisors

Guideposts

Hearst Magazines

Meredith Corporation

National Catholic Development Conference

National Wildlife Federation

New York Media

Our Sunday Visitor

Outdoor Sportsman Group

Quad/Graphics, Inc.

RR Donnelley

SpringerNature

M. Shanken Communications, Inc.

The Economist Newspaper, NA, Inc.

The Enthusiast Group

Time Inc.

Trusted Media Brands Inc. (fka Readers Digest Association)

XO Group